Daily Archives: September 21, 2010

Neoclassical economics has severe flaws. But since the field is captive to the monopolistic money and banking system, it is very difficult for economists who are aware of this to speak up. If they were to speak about the flaws, their careers would be severely limited. Only the most narrow economists who reinforce the status quo of the debt-based monetary system get rewarded. But they are building an insane system. They continue putting their faith in a false religion that passes for science—a religion that says globalism and infinite scale are “good” as the system continues conquering new territory and killing off the things discussed on CSPER.

The top 10 flaws of neoclassical economics

1. Money monopoly = free market Neoclassical economics calls our current system under a private monetary monopoly a free market. Of course nothing could be further from the truth. The monetary system is an overlay on top of the economic system. Economic systems create value through market activity, but the monetary system on top of them determine who captures that value. Neoclassical economics completely ignores the overlay and the fact that it is controlled by an entrenched private monopoly.

2. Ignores that money comes from nothing but debt Economics does not address the fact that all money comes from debt. It assumes that base currency (M0, core money) is just a free-flowing medium of exchange that apparently comes from the US Treasury. It does not. It comes from the Federal Reserve backed by debt.

3. Ignores the artificial scarcity condition Economics ignores how a debt-based monetary system imposes scarcity on countries and populations. There is never enough money to pay back all the debt, so everyone is forced to jump on the hamster wheel, scrambling to find more money to pay back debt. This dynamic is perpetual. It never stops until the system crashes. It need not be this way.

4. Equates net worth with value creation Economics ignores how the financial class and others serving the upper end of the capital structure capture more money simply because they have entrenched power. They extract value. They do not create it. Economics is correct that participants in the economic system create value, but it misses the fact that the monetary system on top of the economic system determines who captures that value.

5. Assumes free, rational, economic actors by ignoring power differential of debt The power differential caused by the monetary system is ignored by economics. This is the only reason the system is erroneously called a “free market.” The monetary system is entirely centripetal, sucking all power to the center, the top tiered financiers. People are in servitude in a very controlling market, not a free market.

6. Ignores the instability of having a pure debt-based monetary system Economists ignore that the economic system is guaranteed to boom, bust, and eventually end because the monetary system on top of it is completely unstable and fundamentally flawed. It depends upon increasing debt. It cannot increase forever, and it can collapse to zero since people have no sovereign money.

7. Ignores the wealth illusion By not addressing the issue of debt-based money, economics fools people into believing the digits in their bank accounts represent wealth. The fact is they represent a conditional liability, i.e. somebody else’s debt. This becomes obvious during deflation. The illusion is reinforced during inflationary periods.

9. Ignores perpetual increasing scale As a result of perpetual exponential growth, institutions in the system continually get bigger and bigger. We saw this as the economic system made towns, counties, and states irrelevant through the last century, and we are now seeing it as mega banks and corporations are now making national governments irrelevant. People are now living as tiny cogs in a machine of incomprehensible scale. Everything in life has been monetized, so things that don’t generate bank credit get devalued (spirituality, psychology, rest, joy, play, etc).

10. Ignores perpetual increasing velocity Another problem from exponential growth is perpetually increasing velocity. The system has to chug faster and harder as it continues to grow. This means human life has to chug faster and harder. The most obvious manifestation of this is the endless, hectic commutes every morning to jobs we despise. We feel frustration, sometimes rage, toward our fellow commuters. That is just one small example of how systemic velocity affects the human spirit.

In coverage of the Andrew McCabe investigation, there seems to be a lot of adding two plus two and coming up with five.The New York Times and Washington Post have reported that a grand jury met on Thursday in connection with a probe involving McCabe, the FBI’s former deputy director. As I write this column on Friday evening, no indictment has been returned a […]

A federal appeals court on Friday revived a lawsuit against Fox News brought by the parents of slain Democratic National Committee staffer Seth Rich, concluding there are plausible claims that the network was party to a “campaign of emotional torture.”

Tesla's automated emergency braking (AEB) system, which was first introduced in 2017, has improved markedly in a relatively short amount of time. Just a few weeks ago, for example, Tesla demonstrated its next-gen AEB system which can more ably apply the brakes when a pedestrian or cyclist is detected. With that said, we recently stumbled across a new vi […]

Archeo ModenaROME—In 2009, the straight world swooned when archaeologists discovered two ancient skeletons from between the fourth and sixth centuries A.D. holding hands in a grave in Modena, Italy. They were dubbed the “Lovers of Modena” and have become synonymous with heterosexual romance, their image now often used in Italy to symbolize undying love.When […]

Venezuelan opposition leader Juan Guaidó rejected allegations Friday that he has ties to an illegal armed group in Colombia, as officials launched an investigation based on photos appearing in social media purportedly showing him posing with members of the gang. The pictures were allegedly taken in late February when Guaidó crossed into Colombia and made a s […]

A pair Confederate statues will remain standing in the city of Virginian city Charlottesville where clashes over their removal left a young woman dead.After city officials decided to remove statues of Confederate American Civil War generals Robert E Lee and Thomas “Stonewall” Jackson, one resident filed a lawsuit to prevent this.

President Trump said he spoke Saturday to Israel Prime Minister Benjamin Netanyahu about the possibility of a “mutual defense treaty” between the two nations—just days before Israeli voters go to the polls to decide the fate of the embattled leader.

A World War II cemetery that is the resting place for hundreds of British and Commonwealth soldiers in the Netherlands was the target of vandals who spray-painted a big swastika and random letters on many headstones.

Police are on the hunt for a solid gold working toilet valued at over $1 million that was stolen overnight on Saturday at Blenheim Palace in Oxfordshire, England, causing damage and flooding at the birthplace and ancestral home of Winston Churchill.

In coverage of the Andrew McCabe investigation, there seems to be a lot of adding two plus two and coming up with five.The New York Times and Washington Post have reported that a grand jury met on Thursday in connection with a probe involving McCabe, the FBI’s former deputy director. As I write this column on Friday evening, no indictment has been returned a […]

A federal appeals court on Friday revived a lawsuit against Fox News brought by the parents of slain Democratic National Committee staffer Seth Rich, concluding there are plausible claims that the network was party to a “campaign of emotional torture.”

Tesla's automated emergency braking (AEB) system, which was first introduced in 2017, has improved markedly in a relatively short amount of time. Just a few weeks ago, for example, Tesla demonstrated its next-gen AEB system which can more ably apply the brakes when a pedestrian or cyclist is detected. With that said, we recently stumbled across a new vi […]

Archeo ModenaROME—In 2009, the straight world swooned when archaeologists discovered two ancient skeletons from between the fourth and sixth centuries A.D. holding hands in a grave in Modena, Italy. They were dubbed the “Lovers of Modena” and have become synonymous with heterosexual romance, their image now often used in Italy to symbolize undying love.When […]

Venezuelan opposition leader Juan Guaidó rejected allegations Friday that he has ties to an illegal armed group in Colombia, as officials launched an investigation based on photos appearing in social media purportedly showing him posing with members of the gang. The pictures were allegedly taken in late February when Guaidó crossed into Colombia and made a s […]

A pair Confederate statues will remain standing in the city of Virginian city Charlottesville where clashes over their removal left a young woman dead.After city officials decided to remove statues of Confederate American Civil War generals Robert E Lee and Thomas “Stonewall” Jackson, one resident filed a lawsuit to prevent this.

US officials have warned that feral hogs heading across the border from Canada may pose a danger to the local environment. The US Department of Agriculture (USDA) reported that sightings of the feral animals on the US-Canadian border have increased in recent years. At least eight of the wild animals have been sighted just north of Lincoln County, Montana, t […]